The management of ABC Ltd. set up the target of selling 10,000 products per week and made all their plans based on this target. But due to change in technology adapted by competitors which reduced their cost, the ABC Ltd, could not achieve their target.
(i) Identify the limitation of planning discussed in the above para.
(ii) State any other two limitations.

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Solution

Limitation stated above-
Planning may not work in dynamic environment
Two limitations of planning-
1. Planning does not guarantee success.
2. Planning creates rigidity.

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Similar questions

Q. Mr. Ram director of ABC Ltd., does the entire planning for the organisation. He instructed lower and middle level managers to strictly follow his plan and does not allow them to deviate from the set plan. He does not involve subordinates in decision making. The lower managers only follow the instructions of their superiors.
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(b) State any other two limitations.
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Zantar Ltd. made its annual plan for the following year on the assumption that the sales of Product A, will rise in the near future. However, that same year a major technological development occured in the production of Product A and new competitors entered the market using that technology. These two incidences led to entry of low-prices and good quality competitors of Product A into the market.

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Limitation stated above-Planning may not work in dynamic environmentTwo limitations of planning-1. Planning does not guarantee success.2. Planning creates rigidity.

Limitation stated above-
Planning may not work in dynamic environment
Two limitations of planning-
1. Planning does not guarantee success.
2. Planning creates rigidity.